comscore iab colombia

October 2009

Bogota, Colombia

Alexander Banks

Managing Director, Latin America

2© comScore, Inc. Proprietary and Confidential.

2

� Corporate headquarters: Reston, USA

– Offices in London, Paris, Tokyo, NYC, Chicago, San Francisco, Seattle, Toronto

� Year founded: 1999

� Employees: 500+

� Successful IPO (NASDAQ: SCOR) – June 26, 2007

� Acquired M:Metrics – May, 2008

� Number of clients: 1,200+

� Company-wide renewal rate well over 90%

� The source of record for leading media outlets worldwide

– comScore data and analysts are cited approximately 8-10,000 times each year

– Search for us online, or visit comscore.com

comScore, Inc: A Closer Look


3

to Measure the Search Market (qSearch)

to Deliver a Worldwide Internet Audience Measurement (World Metrix)

Video Streaming Measurement (Video Metrix)

to Provide Behavioral Ad Effectiveness (Campaign Metrix)

to Build and Project from 2M+ Longitudinal Panel

to Monitor and Report eCommerce Data

Strong Track Record of Innovation & Leadership

WORLD ECONOMIC FORUMTechnology Pioneer 2007

Top 100 MostInnovative CompaniesDecember 2004

World’s LargestWindows DatabaseDecember 2001,2003, 2005

External RecognitionExternal Recognition


4

1,200 + Blue Chip Clients

Internet Agencies Telecom Financial Retail Travel CPG Pharma Technology


5

What does comScore do and how?

� Continuously monitors the online activity of more than 2 million people worldwide, enabling us to analyze and report on all kinds of online behavior

� Provides online publishers…

– Data that helps them better understand the demographic makeup, the level of

engagement, and the behavior/affinity of the unique audiences visiting their various

websites (develop audience, design new content, enrich sales proposals etc.)

– Unique and consistent competitive intelligence, historic coverage for trend analysis

� Provides advertising agencies…

– Data that allows them to more effectively target individuals online, thereby building

powerful advertising campaigns that result in increased ROI for their clients (both

demographic and behavioral, can compare thousands of websites, channels etc.)

� Provides retailers and traditional companies…

– Research that helps them better understand and appreciate the Internet and take

advantage of all the opportunities this platform represents in terms of business

development and CRM

We help companies make money online


Data collected from more than 2M panelists in over 170 countries


Almost 40 countries reported on each month

October 2009

The Global Online Audience

Alexander Banks



� In 1996, 2/3 of the world’s Internet population was in the US, yet today Asia Pacific is the largest region.

� Many emerging regions are likely to bypass old modes, skipping dial-up to go straight to broadband, making multimedia, video, and collaborative content immediately accessible.

� Early adoption of mobile web in addition to PC web will likely be popular in many of these high-growth areas.

Middle East - Africa

Europe

North America

Asia Pacific

Latin America

Distribution of Worldwide Internet AudienceUS Internet Population vs. Rest of the World

Rest of the World

US

The US is No Longer the Center of the Online Universe

Source: comScore World Metrix, July 2009


Internet Users Age 15+ (MM)

China Surges Past the US

While US user growth has remained flat over the past year, China, Russia, and Brazil have

experienced impressive growth rates of 31%, 26% and 23%, respectively.


Millions of Internet Users (15+, home & work locations)


Average Hours Per Visitor Per Month

43.1

32.5

29.7

29.5

28.5

28.3

27.9

27.2

26.6

26.4

25.2

25.1

25.0

24.9

24.6

Canada

United States

Turkey

Israel

United Kingdom

Mexico

South Korea

France

Venezuela

Netherlands

Chile

Colombia

Spain

Brazil

Sweden

Online Engagement by Country

Canada is the most engaged country, followed by the US, both of which

increased time online over the past year (Canada +7%, US +17%)



The Majority of Top Properties’ Audiences Coming from Outside US

196

19264%

237

19770%

76%

73%

370

295

268

81%

66%

854

702

592

84%

77%

77%

US Audience Non-US AudienceTotal Worldwide

Unique Visitors (MM)


�The top 10 Global Properties attract a majority of Unique Visitors from outside the US; Google Sites and Microsoft Sites attain 84% of their audience from non-US countries.

�All top sites have experienced a shift in visitor composition to a more international audience: non-US visitors now represent 77% and 66% of Facebook’s and AOL’s visitors, respectively.

84%


How global online behavior has changed over the last year

Source: comScore Media Metrix Share of Global Minutes on Key Online Categories, May 2008 vs. May 2009

Share of time Spent on Entertainment is growing the fastest

Instant Messengers and Conversational Media both boast significant usage time


What is social media?

� Social Media is…

– media designed to be disseminated through

social interaction

– a logical step in the ongoing evolution of the

interactive platform

– the key driver of the fast-growing Web 2.0

category (including blogs, social networks,

UGC sites etc.)

– the combination of communication (email,

messenger) media-sharing (photos, music,

video etc.) and/or UGC (opinion, feedback)

– an umbrella term that defines the various

activities that integrate technology, social

interaction, and the construction of words

and pictures.


Everything from Twitter to Facebook to Digg to Linkedin to Youtube

Examples of social media software applications include:

� Communication Blogs: Blogger, LiveJournal, Open Diary, TypePad, WordPress, Vox, ExpressionEngine, Xanga

� Micro-blogging / Presence applications: Twitter, Plurk, Jaiku, fmylife

� Social networking: Bebo, Facebook, LinkedIn, MySpace, Orkut, Skyrock, Hi5, Ning, Elgg

� Events: Upcoming, Eventful, Meetup.com

� Collaboration Wikis: Wikipedia, PBwiki, wetpaint

� Social bookmarking: Delicious, Digg, StumbleUpon, Google Reader, CiteULike

� Multimedia Photo sharing: Flickr, Zooomr, Photobucket, SmugMug, Picasa

� Video sharing: YouTube, Vimeo, sevenload

� Livecasting: Ustream.tv, Justin.tv, Stickam

� Audio and Music Sharing: imeem, The Hype Machine, Last.fm, ccMixter

� Reviews and Opinions Product Reviews: Yelp, epinions.com, MouthShut.com

� Virtual worlds: Second Life, The Sims Online, Forterra


Profile: Twitter Users

Source: comScore Media Metrix United States, July 2009

Many Twitter regulars opt to access the service exclusively from their mobile devices after an initial visit to Twitter.com…

…the average visitor spends only 22 minutes on the actual

site, viewing just 35 pages over the course of the month.

Age

composition index UV

Income

+2,613%

UVs (000)

composition index UV

Who’s following who on Twitter?


“Last tweet?”

October 2009

The Latin American Online Audience

Alexander Banks



Latin America Continues Audience Growth

� Growth is flat in North America, European growth mostly driven by Russia

� Asia continues rapid growth on a very large base

� Growth in LatAm expected to continue on the back of increased residential broadband penetration region-wide

Source: comScore Media Metrix, August 2008 to August 2009

960.21,165.2

Worldwide Online Population (Millions)

August 2008 August 2009

+4%

389.6

271.1

183.8

70.3 45.4

477.2

325.6

191.0

90.2 81.2

Asia Pacific Europe North America Latin America Middle East - Africa

Online Population by Region (Millions)+22%

+4%

+20%

+28% +79%

Aug 2009

Aug 2008


Internet Audience in Latin America is to be Taken Seriously

� Brazil is the 8th largest Internet audience (15+, H&W), Mexico 15th , Argentina 19th and Colombia 21st

� In terms of page views (PVs), Brazil was 10th in July, ahead of Spain, India and Italy

� In July, Brazil consumed 3.2% of the world’s PVs, Mexico next with just over 1%

� In average minutes per visitor, Mexico is 6th in the world (Canada 1st with 43+ hours)

� Argentina (47.6) and Brazil (47.3) are both above the WW average in average visits to the Internet per visitor each month (47.2)

� The WW average percentage of 15-24 year-olds online is 27.6% (15+, H&W)

– Venezuela 50%

– Colombia 48%

– Mexico 47%

– Brazil 31%

– Puerto Rico 31%

– Argentina 27%

– Chile 27%


The phenomena that is social media in Latin America

� The social networking category reached more than 82% of all Latin American Internet users in the month of July (15+, home and work locations)

– Unique visitors to the category up 22% over July of 2008

– Average number of visits per unique visitor higher than that seen in the US

� Brazil is head and shoulders above the rest of the region in terms of online social networking

– Orkut leads the way with an average of 28 visits per visitor (Facebook average in US is 22)

– Facebook audience has more than tripled in the last 8 months (Orkut unaffected)

– Twitter audience has grown by a factor of almost 10 over just the last 5 months (from 413k in March

to nearly 3.6M in July)


Facebook’s dominance has spread to Latin America

� Facebook’s recent audience growth across Latin America has been spectacular

– Surpassed 33M in July of 2009 (38% reach)

– Venezuela, Chile and Colombia show the highest reach (80%, 79% and 76%, respectively)

– 3rd largest online property in Chile (2M UVs more than Yahoo Sites, and 2.5X the size of Terra)

– 3rd largest online property in Colombia (2M UVS more than Yahoo, Hi5.com is 7th largest)

– 3rd largest online property in Venezuela (almost 20% more PVs than Google Sites with over 652M)

October 2009

The Colombia Online Audience

Alexander Banks



The Size and Level of Engagement of the Colombian Audience

� Colombia has the fourth-largest Internet population in the Latin America, approaching 9 million home and work users, 15+ (total online pop. ~ 18M)

� The average Internet user in Colombia clocks 23.9 hours of usage per month, an hour and a half more than the worldwide average

Source: comScore Media Metrix August 2009

31.5

13.8

11.5

8.8

6.4

2.1

1.0

Brazil

Mexico

Argentina

Colombia

Chile

Venezuela

Puerto Rico

Internet Users (Millions) in Latin America

26.1

26.2

21.5

23.9

23.8

24.4

17.4

Brazil

Mexico

Argentina

Colombia

Chile

Venezuela

Puerto Rico

Total Online Hours per Visitor Latin America

WW Avg: 22.4


Profile of the Internet Audience in Colombia

� Internet users in Colombia skew young: nearly half the Internet audience is under the age of 24, and 71 percent are under the age of 34

� In comparison, only 54 percent of the global online population is under 34

28%

36%

48%

26%

28%

23%

22%

19%

19%

14%

11%

8%

10%

7%

2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Worldwide

Latin America

Colombia

Distribution of Internet Users 15+

Persons: 15-24 Persons: 25-34 Persons: 35-44 Persons: 45-54 Persons: 55+



Demographic Profile of the Colombian Internet Audience - Sept 2009


How the world uses the Internet

� Source: comScore World Metrix, July 2009

27


How the Colombian Audience Indexes for Key Categories

110

108

140

89

Portals

Search/Navigation

121

131

119

137

98

69

Reference

Social Networking

Blogs

130

179

89

90

62

76

132

121

38

59

35

45

e-mail

Instant Messengers

Retail

News/Information

Travel

Sports

105

112

105

96

111

67

Entertainment

Multimedia

Online Gaming

Reach Index Time Index

Utility & Content Categories

“On-ramp” Categories Web 2.0 Categories

Entertainment Categories



Colombia: Highest-Indexing Web CategoriesIndex Compared to WW Reach

Highest-Indexing Sub-categories in Colombia

� Youthful profile of the Colombian internet user is reflected in the sub-category visitation

– Social networking

– Communication (IM, chat etc.)

– Education

– Photo-sharing

– Teens/Kids

� Content preferences also align with behavior typically seen by newer Internet audiences

– E-cards

– Email

– Greetings/Gifts

10.3

33.3

12.9

22.7

82.4

7.7

63.8

19.0

11.1

44.3

42.3

41.2

89.3

88.4

4.5

15.9

6.3

11.8

46.1

5.0

42.0

12.9

7.6

30.4

31.9

31.4

68.1

67.8

e-cards

Education - Information

Religion/Spirituality

Radio

Instant Messengers

Flowers/Gifts/Greetings

Photos

Kids

Teens

Education

Newspapers

Discussion/Chat

Social Networking

e-mail

Colombia Reach WW Reach

230

210

205

193

179

154

152

147

146

146

133

131

131

130



Colombia Boasts Highest Reach of the Social Networking category

� Almost 9 out of every 10 Colombian Internet users visited a Social Network during October (Facebook, Hi5, Sonico, MySpace etc.)

� More than 3.7 billion PVs in October; more than both Australia & Argentina, and almost 1B more than Chile


The Top 25 Most Visited Web Domains in Colombia

� Facebook in Top 4 with almost 3 billion page views, Hi5 also in Top 20

� Microsoft sites very strong in Colombia, Bing a Top 12 domain

� Google very successful with .com, .com.co, Youtube, .es, etc.

� Rincondelvago, MercadoLibre, El Tiempo & Taringa all Top 25 domains


The Top 25 Most Visited Web Properties in Colombia

� Facebook in Top 3 Properties, 2.5M unique visitors ahead of Yahoo! Sites

� Sonico & Hi5 also in Top 21 Properties, Hi5 more PVs than Yahoo! Sites

� Terra, El Tiempo & Orange Sites (StarMedia) all with reach near 27%

� Taringa continues impressive regional audience growth

October 2009

How to Make Decisions Based on Audience Affinity

Alexander Banks



Case study: Targeting the online audienceTwo sites offering almost identical demographics…

34


…but their respective audiences show clearly distinct preferences in terms of online content

35


Select group of sites targeting heaviest consumers of sites in the business/finance content category


Select group of sites targeting heaviest consumers of sites in the family & parenting category


Select group of sites targeting heaviest consumers of travel category


Select group of sites targeting heaviest consumers of sites in the telecommunication category

October 2009

How Online Advertising Works

Alexander Banks



MEDIUM 2008 Spending ($Billions) Percent

Direct Mail $60.0 20%

Newspapers $34.4 12%

TV - Distribution $28.8 10%

Internet $23.4 8%

TV Networks - Cable $21.4 7%

TV Networks - Broadcast $18.0 6%

Radio $17.2 6%

Yellow Pages $13.8 5%

Consumer Magazines $12.7 4%

Trade Journals $10.0 3%

Out of Home $7.2 2%

Miscellaneous $50.0 17%

TOTAL $296.8 100%

Source: IAB

Advertising dollars spent in the US by platform


2008 U.S. Measured Media Spend: $186 Billion

Dir

ect

Resp

on

se

Bra

nd

ing

$118 B

$68 B

2008 U.S. Online Media Spend: $26 Billion

5%

30%

$6 B

$20 B

Source: Lehman Brothers, ThinkEquity Partners

Online Advertising is Leaving Branding Dollars on the Table

Online as Percent of Total

$118 B

$68 B


Business Week: So Many Ads, So Few Clicks

0.17%

0.12% 0.12%0.11%

0.10% 0.10%0.09%

0.08% 0.08%0.07%

0.06%

Rich Media Click-Through Rates by Industry

Source: DoubleClick DART for Advertisers, January – July 2008

Forrester: 35% of Marketers still use ‘click’ for evaluating branding campaigns


In 2007, Ad Clickers Followed the 80/20 Rule

• In July 2007, despite only representing 16% of the Internet population, moderate to heavy clickers accounted for 80% of display ad clicks

• Clickers were predominately younger (24-44 age range)

• Clickers tended to be lower income (under $40K)

• In July 2007, two-thirds of Web users didn’t click

16%

20%

10%

30%

6%

50%

0%

100%

% Internet Pop % of Clicks

Heavy

Moderate

Light

Non

Source: comScore Natural Born Clickers (July 2007)

Click Frequency


Ad Clickers Now Follow the 90/10 Rule

• Despite only representing 8% of the Internet population, moderate to heavy clickers now account for 85% of display ad clicks

• Just 4% of the Internet users accounted for 2/3 of display ad clicks

• In March 2009, 84% of web users didn’t click

• Vast majority of those exposed to the advertisement are immediately factored out of any ROI measurement

8%

15%

4%

18%

4%

67%

0%

100%

% Internet Pop % of Clicks

Heavy

Moderate

Light

Non

Source: Natural Born Clickers (March 2009 update)

Click Frequency


comScore Regularly Studies the Effectiveness of Online Advertising

� The ability to measure sales response drives the allocation of marketing dollars

� Real world analysis: comScore panelists divided into matched groups (exposed and non-exposed to a particular advertising campaign)

� comScore’s “Whither the Click?”

- 200+ comScore studies conducted to assess impact of paid search and online display ads on:

- site visitation

- trademark search

- online and offline sales

� Journal of Advertising Research

- “What We Know About Advertising: 21 Watertight Laws

for Intelligent Advertising Decisions”

- The 21 most important pieces of advertising research


47

The Impact of Display Ads on Advertiser Site Visitation

There is a significant impact within the 1st week, with a substantial lift being observed over the 4 weeks following initial ad exposure...even considering minimal click-thru rate

Results from 139 comScore Campaign Effectiveness Studies

2.1%

3.1%

3.9%4.5%

3.5%

4.8%

5.8%

6.6%

Week of f irst exposure

Weeks 1-2 af ter f irst exposure



Advertiser Site Reach

Control Test

% Lif t: 65.0% % Lif t: 53.8% % Lif t: 49.1% % Lif t: 45.7%


Display Ads Also Successfully Lift Trademark Search Activity

0.2%

0.4%

0.5%

0.6%

0.3%

0.5%

0.7%

0.9%

Week of f irst exposure




% Making a TM/Brand Search

Control Test

% Lif t: 52.3% % Lif t: 46.0% % Lif t: 40.3% % Lif t: 38.1%

Results from 139 comScore Campaign Effectiveness Studies

Significantly increase the likelihood of specific product searches vs generic searches

Latent effect helps highlight the brand-building value


How Online Advertising Works: Summary

� Forget the “Click”

– Time to move on

– All that can be measured should not necessarily be measured

– The Internet is just another screen, albeit much more measureable

� Like any other media, focus measurement of ROI on the sales impact and the change in consumer behavior and attitudes over time

� Online branding campaigns have proven to be very effective for both online and offline retailers, online and in-store sales lift highlighted in ‘Whither The Click’ white paper

� Use Reach / Frequency metrics in pre-planning and post-analysis of media plan

� Follow traditional model on the Internet: What I am saying? To how many? How often?

-Ted McConnell, Director of Digital Innovation at P&G


In Conclusion and Questions & Answers

� Colombia has a young, highly engaged and fast-growing Internet audience

� Social media clearly the enabler in terms of content

� Dominant 15-24 is attractive demographic for some, others need to plan/target effectively by demographic, affinity etc.

� As the years pass, demographic makeup of audience will even out, content consumed will align more and more with rest of the world

� The Internet will only become more and more important, especially for ad agencies and advertisers, as well as traditional companies

� For advertisers, digital strategies should always consider the time spent on line, the highly targeted advertising opportunities it offers, and the significant brand-building/customer-engagement opportunities it presents

� Questions & Answers?

- Colombian audience questions? Top sites?

- Methodology? Panel in Colombia? Recruitment?


Introducing comScore MMX360: A Panel-Centric Hybrid Measurement Approach

A best of breed approach

to digital measurement

that continues to revolve

around people


Introducing MMX 360: Panel-Centric Hybrid Measurement

QUERY TAGSContent

Categorization

PANELPeople Measurement

Reach, Demographics, Affinity, Duration

SERVERSCensus Coverage

of UsageAnywhere

Complete and Fully Reconciled Measurement


Filtered Traffic Broken Out by Source, then Home + Work Universe Integrated with Panel

Filtered Census Traffic

Apply proprietary methodologies to develop

comScore Universes

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Mobile Phones

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Work

Home

The Universe Report

Gender

Age

Income

Surfing

Location

Leverage Panel, derived detailed demographic and

person level behavior

comScore Global Panel

Streaming


The Universe Report As Part of New Dashboard View

Site usage across Home/Work + Mobile + Shared Machines (for hybrid entities only)


comScore MMX360: Key Benefits for those who participate

� Comprehensive coverage; 100% of activity

– New “Universe Report” will include mobile & public machine usage (Internet cafes, universities etc.)

– New measurement including Internet cafes, universities etc. will initially only be page views

– Census-adjusted metrics in current Media Metrix reports (Home/Work)

� Improved coverage of At-Work population (work intensive sites)

� Harmonization / reconciliation of panel measurement vs. server log files

� Improved quality of International data – particularly in countries where shared access is significant

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� Truly “the best of both worlds”